Bill > SF1422

This bill authorizes Minnesota cities to create land-value taxation districts, which are special areas where property taxes are calculated and distributed differently than in standard taxation systems. The bill establishes a comprehensive framework for creating and managing these districts, starting with defining key terms like "city" and "district". Cities can establish a land-value taxation district through an ordinance that specifically identifies the parcels or geographic areas included and describes how property taxes will be reallocated. Before establishing such a district, the city must hold a public hearing, provide detailed notice to property owners, and allow affected individuals to testify. The bill stipulates that tax reallocation must use uniform rates based on specific tax bases, such as net tax capacity, referendum market value, or property value excluding improvements. The city must compile total property taxes for the district, then allocate those taxes among properties according to the ordinance's terms, and report revised tax amounts to the county treasurer. Importantly, property owners in these districts can appeal land valuations separately from improvement valuations. The provisions of this bill will become effective for property taxes payable in 2026, giving cities time to prepare and potentially implement land-value taxation districts.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1422&ssn=0&y=2025